Sensex drops nearly 400 points; Nifty slips below 24,150 at open

Indian equity markets opened lower on Tuesday, with the Sensex falling nearly 400 points and the Nifty slipping below 24,150. The decline was driven by escalating US-Iran tensions, elevated crude oil prices, and renewed selling by foreign portfolio investors (FPIs). The geopolitical risk from the Middle East has pushed oil prices higher, which negatively impacts India's import-dependent economy. The market opened with broad-based selling across sectors, reflecting investor caution. Analysts noted that sustained FPI outflows and rising bond yields in the US are adding pressure on emerging markets like India.

Global Impact

The Indian market decline reflects broader emerging market stress from rising US yields and geopolitical risk. Higher crude oil prices due to US-Iran tensions will pressure India's trade deficit and inflation, potentially forcing the RBI to hold rates longer.